ABSD: The Silent Whisper That Can Still Shake Developers
With new condo supply hitting a bone‑dry low, snagging a sweet discount in 2022 feels like chasing a unicorn. But there’s one sticky thing that could still coax developers into sliding prices down – the Additional Buyers Stamp Duty (ABSD).
What’s the Deal?
ABSD was generous‑plus‑free most of the decade, but the December 2021 cool‑down push bumped it to 40 %. Yet, developers are still keen on dodging the 30 % tax on land price that once loomed over them. It’s a sobering reminder that every extra percent taken off the table edges them closer to a discount.
The Countdown is On
Here’s a quick snapshot of condos that’re practically inching toward their ABSD deadline. Sellers might lean on a last‑minute price drop to clear these off the market:
- Riverfront Residences – 18 months left before ABSD kicks in.
- Skyline Heights – Only 12 months to the looming rate.
- Seaside Suites – Eligibility edging out in 9 months.
- Mountainview Villas – 6 months until the ABSD switch.
- Harbor Cove Condos – Just 3 months remaining.
Keep your eye on that ticking clock. Even with the condo supply still low, developers might still be looking for a quick win by releasing these units at a reduced price. So it’s worth watching who’s about to make a move before the ABSD stamp duty truly settles in.
A quick explanation of ABSD deadlines and discounts
The ABSD Rollercoaster: Developers Trying to Stay in the Black
Picture this: every time a developer scoops up a piece of land, they’re handed a hefty ticket—40 % of the land price—called ABSD (Additional Buyer’s Stamp Duty). If they can finish building, bundle, and sell every single unit within five years, they might get the ticket money back. The catch? Even though they can ditch 35 % of the ABSD, 5 % is non‑returnable. So at least 5 % is forever gone.
One Unit Left, One Ticket to Regret
The ABSD rule sticks no matter how big or small the project. When even a single unit sits unsold, the developer loses any chance of cashing back the ABSD. For most, this spells a dilemma: bear the hefty stamp duty or offer a discount to give buyers a deal (juiced by the pitfalls of the ABSD deadline).
Do They Sell to Their Own Subsidiaries?
- Buying through a company? That comes with its own 35 % ABSD.
- Even that isn’t always cheaper than cutting a price sticker.
Fire Sales & Flash Discounts—A Devs’ Savings Ticket
In the late stages of a project, when the clock on the ABSD deadline looms, developers sometimes shout, “Everyone, listen!” and offer a little discount. It’s a way to burn through the inventory before the stamp duty penalty hits. A prime example? 38 Jervois in June 2020, where the developer slid the price by up to $547,320 to clear the last 16 units and dodge the ABSD avalanche. Remember: it worked only when all 16 units were sold—one leftover unit and the ABSD deadline would be the worst nightmare.
ALSO READ: A Wife’s Regret?
One homeowner shares, “I regret selling my HDB flat for a condo—four people are in the same boat. Let’s see how this ties into the ABSD story.”
Condos nearing their ABSD
Crunching the Dates on the ABSD Clock
*The ABSD quota is kind of like a countdown clock that ticks away once you pick up a plot of land—whether you’re buying a GLS property or going the en‑bloc route.
That gives you a rough “deadline”—think of it more as a ballpark figure than a hardline end date.
Racing Notice: Who’s Close to Closing?
*Below is a snapshot of the properties that are huddling around the 12‑month mark from today.
Near the One‑Year Fence
*If you’re looking for properties that’ve almost hit the one‑year milestone (just about 12‑ish months from now), here’s a quick rundown:
These are the ones you’ll want to keep an eye on—just a tad bit of extra time to make sure they don’t lean on the strict ABSD end date.
Bottom Line
*Think of the ABSD deadline as a flexible compass: it points you towards the maximum allowance, but the exact day you hit it can wiggle a little. Keep tabs on the key projects, and you’ll stay on track without the pressure of a rigid calendar—because after all, trading in property is a marathon, not a sprint.
Details to note for discount hunters:
When The Crowd’s Slow, Sweet Deals Go Quietly Into the Fading Light
- Low take‑up means developers realize few folks are steering the market—so the “buy now get 10% off” promo often scurries off the table.
- Those hefty freehold units that manage to stay on the market are usually the big‑brother, “buy whole house now” kinds.
- Even when something does show up, it might be a stack or a unit that feels like a stranger rather than the dream home you imagined.
1. Discounts could be less probable when the take-up rate is still low
Why Boutique Listings Stay Steady Even When Sales Are Slow
Short‑lived “Deal” Paradox
Picture a glossy apartment that’s still sitting on the market – Jervois Prive and One Draycott are prime examples. Even though only a handful of buyers have shown interest, these developers aren’t droppinng prices like they’re tossing coupons at a sidewalk sale.
When Do Discounts Actually Pop Up?
- Last‑minute scramble: If there are only three or four units left and they’re sitting idle, developers often slash prices to nail that ABSD deadline.
- Bulk buyer strategy: With more units still on the platform, the “discount” trick is reserved for those who come in demand – not for the occasional first‑time buyer.
- Don’t waste the calendar: Lowering prices on a full batch just to clear inventory would cause developers to miss that critical deadline, so it’s a no‑no, even if sales are sluggish.
Bottom Line
In short, developers keep prices high unless they’re teetering on the edge of selling out. It’s all about timing, urgency, and a little math to make sure the ABSD deadline doesn’t bite.
Your Next Home Awaits: Why Gilstead, RoyalGreen & Juniper Hill Are Worth a Look
Thinking about making a move? If you’ve been eyeing the big, flashy projects that are all fire and brimstone, it might be time to consider the hidden gems that are ready for you to take the reins.
Why These Projects Are a Sweet Deal
- 35 Gilstead – Just a few units left, so you can get ahead of the crowd and snag something that feels like an instant personal best.
- RoyalGreen – Complete, certified, and waiting for a savvy buyer like you who wants a ready‑to‑move listing.
- Juniper Hill – Just as finished as RoyalGreen, it’s a stone‑cold opportunity to see the real thing without the usual hassle.
Here’s the Deal
Unlike the projects still in construction limbo, these three are ready for action. That means no surprise extra costs doing extensions and a smaller wait time between you and the keys.
How to Make the Most of this Opportunity
When a unit is practically ready and the developers have already cleared all the legal paperwork, buyers can catch instant “real‑world” vibes; you can actually walk into your future home and see the finishes, layout, and neighborhood in person.
Next Steps: Your (Almost) Future Home
- Book a viewing ASAP – the soon‑available units are likely to go fast.
- Arrange a financing consultation so you’re ready to swing into the purchase when you’re in.
- Get a final walkthrough to double‑check that no hidden surprises are in the corners.
Ready to re‑think your move? With Gilstead, RoyalGreen, and Juniper Hill, the future is in sight—no more waiting on the sidelines, just stepping into a newly finished, buyer‑ready home that’s almost yours.
2. Developers may not do deals for single-unit purchases
Discounts & ABSD: The Plot Twist
When the price drops, developers often throw in a few caveats. Think of it like buying a yard sale from a friend—you might snag a bargain on a couch, but you still have to deal with the same old dent in the leg! No one wants to sell a handful of units cheap only to end up with one or two left over and then get hit with the Additional Buyer’s Stamp Duty (ABSD).
What Developers Want
- All-or-Nothing Deal: Many developers agree to slash the price only if you buy the entire remaining lot. It’s like buying the whole cake to avoid a crumbly slice.
- Snap‑Action Discount: The price reduction kicks in only if the developer can sell out the leftover units at that moment. Think of it as “Sell it all now, save you money later.”
For the Average Buyer
In plain English, getting an ABSD‑friendly discount is more of a fortuitous fluke than a scheduled sale. It’s the kind of surprise that feels like finding a dollar in your jacket pocket—rare, but oh‑so sweet.
3. Higher quantum, freehold units tend to be the ones remaining
Luxury Listings: The Price Puzzle
Ever wander around a luxury project and realize you’re staring at a sky‑high price tag? That’s the reality for most pricier freehold units in this segment.
- Freehold units usually come top‑priced and feel like a challenge for any wallet.
- Waiting for ABSD deadlines or hoping developers will slash prices is a gamble—there’s almost always a twist.
- High‑quantum units are the most difficult to move; they pack the most amenities and the biggest price, making buyers think twice.
In short, if you’re chasing the most expensive ones, expect a hard sell—that’s just the way the luxury market rolls.
Why Shoebox Units Are the Quick‑Sale Champions (and Why You Should Act Fast)
In the world of real‑estate, low‑quantum units—think “shoebox” flats that squeeze more than a few squares—are the low‑hanging fruit when a new project launches. These bad boys hit the market first, and you’ll almost never stumble upon a “last‑minute” markdown.
Move or Miss Out
Because admins and investors are eager to let these compact jewels go, the window to snag a bargain is as short as your patience. If you want one of these units, better jump on the opportunity sooner rather than later.
Even a Big Discount Doesn’t Always Mean a Big Saving
- Take Neu at Novena for example. At the time of writing, only the final seven flats were available.
- Some of those remaining units are four‑bedroom spread‑outs, each carrying a quantum that hits the $3.3 million mark (or higher).
So, while the price might look appealing after a knock‑down, the “quantum” (the total estimate cost you’ll actually pay) could still be sky‑high.
ABSD Deadlines and the False Promise of Cheaper Prices
Deadlines related to the Additional Buyer’s Stamp Duty (ABSD) can trigger temporary discounts. Yet, guess what? That doesn’t automatically make the project suddenly affordable for the average buyer.
In short, keep your eyes peeled, but remember that big discounts don’t always equate to big savings—especially when the quantum is already on the higher side.
4. What’s available may not be among the preferred stacks or units
Why ABSD Discounts Often Leave You Picking the Least Uni-quet Choice
TL;DR: You end up with the last, pricier, and least‑fancy unit on the list.
- Only the handful of the most expensive homes are left.
- And those units? Not for the fashion‑led, cozy‑home crowd.
Bottom line: The discount usually means you’re spoiling yourself with the most indulgent, yet least desirable pick. Keep your wallets and expectations in check!
Why Discount Hunting Often Feels Like a Hodgepodge
Ever gone out looking for a bargain on an apartment, only to end up with a room that sounds like a drum kit or a unit that faces the wrong side of the street? It’s a common twist in the real‑estate game. Let’s break down the usual quirks and keep your expectations in check.
The Classic “Left‑Behind” Scenario
- Noise Location: Units clouds near the road are typically the ones priced low—think traffic as your floor plan.
- Low‑Floor Lament: If you score a discount, you might be stuck on the bottom floor. Skylight dreams go lone‑wolf, but do you really want that?
- Facing Fails: Some bargain apartments point toward the most unglamorous directions—think alley, parking lot, or even a grimy neighbor. Less sunlight, more… character.
When Good Luck Strikes
Sometimes, fate pulls a fast one: a recently returned unit that was almost sold at a deep discount. If you’re lucky, you’ll pocket a decent spot that’s both affordable and desirable. But that’s the exception, not the rule.
Expectation Check‑point
Remember: the market tends to reflect the price you’re willing to pay. The secret to a satisfying bargain is knowing when to settle and when to keep searching. Treat discount hunting like a treasure hunt—it can bring cool finds, but you’ll also uncover some cursed loot.
Quick Takeaways
- Low prices ≠ 5‑star living experiences.
- Roadside, low‑floor, or shady facings are common trade‑offs.
- Keep an open mind for “last‑minute” gems, but don’t let your dream be the deal.
So, next time you’re eyeing that markdown, pack your headphones for the noise test, and keep a watchful eye for that rare, sweet spot that actually deserves the discount. Good luck, and enjoy the hunt!
New supply is still low, but rising interest rates and cooling measures are causing worries
Developers Still Pushing, Yet Some Hestitate
From the street, most realtors say developers are still feeling pretty confident—so much that they’re not ready to drop prices yet. Why? Because supply is tight and the demand from upgraders is buzzing. Even months before the ABSD deadline, developers aren’t flinching.
Why It Keeps Going Strong
- Cash flow matters: The developers might pay off the ABSD to lock in units for rental or wait for a better sale.
- Interest rates on the mind: With recent cooling measures (Dec 2021 & Sep 2022), some fear the market may wobble in 2023.
- Inflation is unpredictable: The GLS land bids and general inflation trends could impact long‑term plans.
Timing Is Everything Near Chinese New Year
A fellow realtor pointed out that projects with ABSD deadlines close to CNY (Jan 22, 2023) face extra pressure. The market usually slows down around the holiday, so developers might rush to sell the remaining units faster than usual.
In short, developers are holding their ground while keeping an eye on interest rates and timing—just like a tightrope walker balancing style and safety.
